Brokerage Stocks Fall 2.5% As Closing Auction System Triggers Volatility

Some companies called brokerages help people buy and sell shares of other companies.

The stock exchange recently introduced a new rule for deciding the final price of a share when the market closes.

Under the old rule, the closing price was an average of prices during the last half hour of trading.

The new rule adds a special 20-minute window after normal trading ends, where final prices are set based on the price at which the most shares can be bought and sold.

The change made some big investors trade less because they were not used to the new system yet.

Because trading went down, the companies that earn money from trading saw their own share prices fall too.

Shares of Angel One fell about 2.4%, and shares of Motilal Oswal fell almost 1%.

The main stock market indexes, like Nifty and Sensex, moved up and down more than usual.

Experts think this is just a short adjustment period.

Once traders learn the new rule, the market should settle down and become calm again.